In today’s edition of Advice for the Good Life, we’re delving into the implications of the Big Beautiful Bill and what it means for investors navigating the current financial landscape.
Next, our Wellness Navigator, Christine Despres, will address the thought-provoking question: Does Your Brain Need PTO?
Finally, in the Etcetera section, we’ll revisit some significant moments from this day in history, discuss the significance (or lack thereof) of Amazon Prime Day, and share handy tips for spreading the word about our newsletter, along with a look at our new and improved, client-centric website.
With that, let’s jump in!
Wealth Advisory: Understanding the “One Big Beautiful Bill” and Its Implications
Following extensive legislative deliberations, Congress has passed and President Trump has enacted a comprehensive tax and spending package on July 4. This expansive legislation encompasses making numerous components of the Tax Cuts and Jobs Act permanent, increasing state and local tax deduction limits, maintaining estate tax thresholds, and implementing additional measures. The legislation seeks to balance these provisions through targeted spending reductions, particularly in areas like Medicaid.
This legislation holds significance because, although trade policies have dominated recent discussions, fiscal policy uncertainty in Washington has been mounting for years. Despite political divisions regarding the budget’s direction, it eliminates the prospect of a “tax cliff” scenario where tax policies could have undergone dramatic changes upon the expiration of existing provisions at year-end.
For individuals, taxation directly influences numerous financial planning considerations, and the particular provisions within this tax legislation carry immediate consequences for household budgets. From an economic standpoint, many investors express concerns about government expenditure levels, the expanding national debt, and additional factors that have influenced markets over recent decades.
Therefore, the recently enacted budget can be examined from multiple perspectives. What should investors understand regarding their personal financial strategies and the market implications for coming years?
Tax Cuts and Jobs Act provisions become permanently established.
The recently passed tax legislation, termed the “One Big Beautiful Bill” by the current administration, extends and broadens several critical elements from the 2017 Tax Cuts and Jobs Act (TCJA) that faced expiration. Additionally, it establishes new provisions offering taxpayer benefits, which are only partially balanced by expenditure reductions elsewhere. Several major provisions that may impact households include:
- Existing TCJA tax rates and brackets become permanently established. These were initially scheduled to sunset at 2025’s conclusion.
- Standard deduction amounts rise to $15,750 for individual filers and $31,500 for married filing jointly in 2025.
- An additional $6,000 deduction becomes available for eligible seniors (often called a “senior bonus”) with phase-outs beginning at $75,000 gross income. This provision sunsets in 2028.
- Alternative minimum tax exemption gains permanent status. Phaseout thresholds also increase to $500,000 for individual filers, with future inflation indexing.
- Child tax credit increases from $2,000 to $2,200 per qualifying child, with subsequent inflation-indexed adjustments to preserve purchasing power.
- State and local tax (SALT) deduction ceiling rises to $40,000 from the previous $10,000 cap, with 1% annual increases through 2029. The limit returns to $10,000 in 2030.
- Tip income deduction up to $25,000 annually for workers earning under $150,000, effective until 2028.
- Various green energy tax incentives face elimination, including electric vehicle and residential energy efficiency credits.
- Federal debt ceiling increases by $5 trillion. This prevents congressional debt limit debates for an extended period, reducing political uncertainty.
- Business provisions expand tax incentives aimed at promoting domestic investment and employment creation.
These modifications, along with numerous others, preserve the relatively modest tax environment that has defined recent decades. The accompanying chart demonstrates that present tax rates remain substantially below historical peaks experienced throughout much of the 20th century, when top marginal rates surpassed 70% and occasionally exceeded 90% during wartime.
Rising fiscal deficit concerns.
Tax policy and government deficits represent interconnected fiscal elements. Tax reductions decrease government revenues, requiring compensation through either reduced expenditures or increased borrowing. Nevertheless, most government spending involves entitlement and defense programs that prove politically challenging to modify. Treasury Department data indicates that in 2025, Social Security accounts for 21% of government spending, Medicare represents 14%, National Defense comprises 13%, and debt service costs constitute 14%.
Consequently, government borrowing has risen consistently over the past century and will likely continue this trajectory. The Congressional Budget Office, a nonpartisan congressional support agency, projects that this new tax and spending legislation will contribute $3.4 trillion to the national debt over ten years. This occurs alongside a federal debt already exceeding 120% of GDP, totaling $36.2 trillion, which equals approximately $106,000 per American citizen.
Regrettably, straightforward solutions to this challenge remain elusive, particularly given the politically contentious nature of fiscal policy. Tax reductions can potentially stimulate economic expansion, potentially offsetting revenue losses through enhanced economic activity. However, Washington’s historical record of budget balancing remains poor, even during periods of economic strength. The most recent balanced budgets occurred 25 years ago under the Clinton administration, with the previous occurrence 56 years earlier during the Johnson presidency.
It’s worth noting that income taxation hasn’t always existed in the United States. The contemporary income tax framework originated with the 16th Amendment in 1913, initially applying modest rates to relatively few Americans. The system expanded considerably during the Great Depression and World War II, with top rates reaching 94% by 1944. The post-war era brought various reforms, including President Reagan’s Tax Reform Act of 1986, which simplified the tax code and reduced rates.
Circumstances have evolved substantially in subsequent years. The accompanying chart illustrates that individual income taxes now constitute the primary federal revenue source. Social insurance taxes, or payroll taxes, are deducted from wages to fund Social Security, Medicare, unemployment insurance, and related programs. Other revenue sources remain proportionally smaller, including corporate taxes reduced by the TCJA, and excise taxes such as tariffs.
For investors, tax policies certainly carry direct implications for financial plans and portfolios. From a macroeconomic perspective, however, fiscal effects remain more constrained. Over extended periods, elevated debt levels can influence interest rates and inflation expectations. While these factors have been relatively elevated recently, many worst-case scenarios have not materialized. The essential approach for long-term investors involves maintaining diversified portfolios capable of performing across various fiscal and economic conditions, rather than responding solely to policy modifications.
Legislation maintains elevated estate tax exemption thresholds.
Among the provisions that would have been central to a tax cliff scenario are estate tax exemptions. The TCJA had doubled these limits, which were scheduled to return to previous levels this year. However, the new tax bill’s passage makes these higher exemptions permanent, further raising the threshold to $15 million for individuals and $30 million for couples in 2026.
While estate taxes might appear to affect only higher net worth households, the reality is that all families must consider asset transfer strategies to future generations. This necessitates a comprehensive approach integrating estate planning, tax efficiency, philanthropic goals, and long-term family wealth preservation objectives. It’s also crucial to remember that individual states may impose estate taxes with exemption thresholds less favorable than federal levels.
The bottom line? The new spending and tax legislation extends and expands the current low-tax environment. For investors, a well-constructed financial plan incorporates these tax provisions appropriately. Regarding growing deficits and national debt, it’s crucial to avoid portfolio reactions and maintain a long-term investment perspective.
Your Wellness Navigator and Holistic Health Guide: Christine Despres, RN, NBC-HWC, CDP
Give Your Wellness Goals some PTO
Happy Summer!! It’s officially here and I hope you’re finding little ways to slow down and soak it all in.
Whether it’s walking barefoot through the grass, sticking your toes in the sand, feeling the sunshine on your shoulders, or letting your to-do list wait while you sip something cool and just breathe—this season is a chance to reconnect with what really matters. Nature, family, friends, joy and freedom…
Maybe you let your wellness goals have some well deserved PTO too. Give yourself a break from the shoulds, be in the moment and do what makes you happy. Your brain loves smiles, relaxation, gratitude and calm as much as it appreciates all the other healthy habits we do.
As someone who’s gone through a lot of stress these past years and experienced the toll it can take, I believe summer is nature’s invitation to rejuvenate and nourish. Refill your cup. Your brain and nervous system thrive on it. Take the time to listen to your body, ask what it really wants and let that be your focus for a little while. That’s my goal, to calm things down and lower cortisol levels.
Let yourself rest. Laugh a little more. Watch the sunset. Jump in the lake. Lay in the sun. Have the margarita. Whatever feels right in the moment without guilt or regret. Life was meant to be enjoyed. This is when the 80/20 “rule” shifts to a 70/30 “guide” and you let your hair down (and don’t even blow dry it!)
So cheers to your summer. ☀️ENJOY!! 💦
With care,
Christine
Your wellness Navigator
P.S. I am really excited to announce my free gift to The Wellness Navigator community! It is in appreciation for the love and support that has been given to me and a way for me to give back, virtually.
*This is your invitation to join my FREE Monthly Brain Boost Sessions- 30 minutes virtually the 1st Wednesday of every month.* 30 minutes to focus just on you. You deserve it! Plus it’s a gift. When you optimize brain function, everything else gets better—from your energy, focus and mood to your sleep, hormones, and weight. This is my wish for you. Living your best life!
Please share with your friends, family and coworkers who may also benefit from reducing stress, creating clarity and improving their holistic health habits. Thank you❤️
Sign up here:👉 Brain Boost Sessions Here’s what to expect:
- A short centering meditation to lower stress levels
- Straightforward insights on brain health, aging, and vitality
- Real science, not fluff
- Actionable steps to boost how you feel and function
- A relaxed, supportive space—no pressure, no prep
- You show up and I will be your guide. Just bring your pen & paper and favorite morning beverage. (PJ’s optional!)
- They will be recorded if you miss the live event.
If interested in working with Christine directly, you can reach her through her email at christine@thewellnessnavigator.com orwww.thewellnessnavigator.com.
📜 On This Day in History (July 8th):
In 1776, the Declaration of Independence was read aloud for the first time in public, outside Independence Hall in Philadelphia, ringing from the bell tower we now call the Liberty Bell. Just one year earlier, George Washington had taken command of the Continental Army. These moments remind us that bold declarations—backed by courageous action—change the course of history. What bold step are you declaring this month?
🛒 What Is Amazon Prime Day, Anyway?
Curious about all the buzz around Prime Day? Here’s a helpful explainer from Consumer Reports breaking down what it is, how it started, and what to expect this year:
👉 What Is Amazon Prime Day and How Can You Prepare?
📬 How to Share “Advice for the Good Life”:
The easiest way to spread the good life? Just send folks to our site: joncgoodman.com. While you’re at it, take a few minutes to explore the updated site yourself—we’ve designed it to be clear, helpful, and client-first at every turn. Sharing wisdom has never been easier.
That’s all for today.
I hope you’re still enjoying the new format.
Until next week,
All my best,
